Attorney General Aaron M. Frey has announced two significant cooperation agreements and settlements in a multistate litigation against generic drug manufacturers. The agreements, totaling $49.1 million, involve Heritage Pharmaceuticals and another corporation accused of inflating prices and limiting competition for generic prescription drugs.
The settlement with Heritage Pharmaceuticals amounts to $10 million and will be filed in the United States District Court for the District of Connecticut in Hartford. A second settlement with an unnamed corporation is valued at $39.1 million and will be finalized soon. Both companies have agreed to cooperate with ongoing litigations led by Connecticut against 30 corporate defendants and 25 individual executives, along with implementing internal reforms to ensure compliance with antitrust laws.
These settlements precede the first trial scheduled to take place in Hartford, Connecticut. Consumers who purchased certain generic drugs from Heritage or the unnamed corporation between 2010 and 2018 may be eligible for compensation. For eligibility inquiries, consumers can call 1-866-290-0182, email info@AGGenericDrugs.com, or visit www.AGGenericDrugs.com.
Attorney General Frey stated, “While too many Mainers struggle with prescription costs, these defendants colluded to make themselves rich and made it harder for consumers to access critical health care.” He emphasized that this settlement is a step towards accountability and addressing high prescription drug prices.
The case stems from evidence provided by cooperating witnesses, extensive document databases, and phone records revealing communication among industry executives during social events where illegal agreements were allegedly formed. Defendants reportedly used terms like "fair share" and "responsible competitor" to describe their actions.
Since 2016, three antitrust complaints have been filed by the Connecticut Attorney General’s Office alongside nearly all states and territories. The first complaint involved Heritage Pharmaceuticals among others; the second was against Teva Pharmaceuticals; the third focuses on topical generic drugs accounting for significant sales in the U.S., involving numerous corporate and individual defendants.
Several states including Alaska, Arizona, California, Colorado, Florida, Georgia, Illinois, New York, Texas, Virginia, Washington among others have joined in this announcement.